ASX-listed Paladin Energy’s technical programmes to restart work at the Langer Heinrich mine, in Namibia, are now complete and have reinforced its confidence in the mine as a robust, competitive and long-life operation that is ready to rapidly restart production in the right uranium price environment.
The Langer Heinrich Mine Restart Plan Update has confirmed the restart cost estimate of $81-million and a 17-year mine life supported by ore reserves of 84.8-million tonnes.
Moreover, the Restart Plan Update has put the estimated life-of-mine cost at $27.40/lb, compared with the previously estimated $26.90/lb, primarily owing to increased estimated contract mining rates.
Paladin will now focus on exploring value enhancement opportunities at Langer Heinrich and across its broader asset portfolio.
The company says it continues to engage with global nuclear energy utilities with the intent of securing uranium offtake contracts with sufficient duration and value to underpin the restart of the mine.
Paladin has developed an accelerated schedule with an optimised mine project execution plan which may be implemented to meet customer requirements, and includes the possibility of self-funding early works this year and fast-tracking first production when a decision to restart is made.
The mine remains on care and maintenance.
“The Restart Plan Update is the conclusion of an extensive work stream that has reinforced our confidence in Langer Heinrich as a low-risk, robust, long-life operation. We continue to engage with global nuclear energy utilities to secure long-term contracts to underpin the restart of Langer Heinrich and ensure the project, when restarted, will deliver significant economic benefit to all of our stakeholders,” says CEO Ian Purdy.
He highlights that the improving structural outlook for uranium markets and the transition towards the decarbonisation of global electricity generation provides the platform for an exciting period ahead for Paladin.